The year's busiest homebuying season just hit its lowest point in 13 years

New York Post

2 days ago

This year's spring homebuying season — typically the hottest stretch on the calendar — barely got off the ground, logging the weakest performance since 2012.
Pending home sales from April through June hit a 13-year low, according to Redfin, as high borrowing costs and lingering affordability issues pushed would-be buyers to the sidelines.
Even in a season that's usually buoyed by pent-up demand, agents reported sluggish traffic and tough sells.
5 The US housing market just notched its worst spring selling season since 2012, with nationwide pending home sales from April through June hitting a 13-year low, according to Redfin.
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In Atlanta, longtime agent Glennda Baker is sitting on 21 listings and slashing prices to get attention.
'People say price solves everything,' she told Bloomberg. 'But price doesn't solve uncertainty.'
5 Despite early signs of a rebound — flattening prices, a dip in mortgage rates and a temporary uptick in listings — the market was derailed by economic uncertainty and persistent affordability issues.
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Earlier in the year, falling rates and cooling price growth had sparked cautious optimism that the market might rebound.
'We thought we hit rock bottom but we keep discovering there's more rock bottom to be had,' Chen Zhao, head of economics research at Redfin, told Bloomberg.
While sellers aren't yet slashing prices en masse, many are pulling listings altogether, reducing inventory and stalling any chance of a buyer-friendly market reset.
The result: Even with a buoyant stock market and slight gains in consumer confidence, economists say any delayed spring activity won't fully carry over into summer.
'The outlook for the housing market is dire,' Thomas Ryan of Capital Economics added. 'Affordability is at its worst since the 1980s. Nothing has changed on that front.'
Regional disparities are also widening.
In the Northeast and Midwest, severe inventory shortages are still pushing prices higher.
But in Sun Belt states like Florida, Texas and Nevada, where homebuilding boomed in recent years, listings are stacking up and sales are sinking.
5 Buyer paralysis is widespread, and while some markets in the Northeast and Midwest are still seeing price gains due to tight supply, overheated Sun Belt metros like Las Vegas and parts of Florida are seeing a glut of listings and plunging sales.
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5 Analysts warn that, despite a strong stock market and a rebound in consumer confidence, a major summer turnaround is unlikely.
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In Las Vegas, active listings jumped more than 38% year-over-year while sales dropped 15%.
'The fear of missing out has shifted from buyers to sellers,' Angela O'Hare, a local agent with Real Broker, told the outlet. 'Sellers who need to sell will make it happen. I had a listing at $950,000. I cut it down to $799,000 and had three offers.'
Even resilient markets like Narragansett, Rhode Island, are feeling the chill.
'We're seeing a lot more price decreases throughout Rhode Island now,' Johnny Sheil, of Mott & Chace Sotheby's International Realty, said. 'Uncertainty scares some people.'